Housing Bubble

The total number of homes with foreclosure filings jumped 27% in October from September, when they’d been at the lowest level since 2006. It was the biggest jump in monthly foreclosure filings since August 2007.

"Our elites have been the habit of denying difficult realities for too long...and now someone different is running; someone who rejects the stories that tel us everything is fine... No matter what happens in this election, what Trump represents is not crazy... and it's not going away."

"Debt in China has grown by US$4.5 trillion over the past 12 months, by far the highest amount of debt creation globally as compared to US$2.2 trillion in the US, US$870 billion in Japan and US$550 billion in the euro area. Indeed, China on its own has added more debt than the US, Japan and the euro area combined."

Europe truly is a continent full of powder kegs. Even before you add refugees. However, the US and UK are first in line when it comes to the risk of being rendered ungovernable. Partly simply because of timing, and partly because the differences between various ‘groups’ and movements are as pronounced as they are already today. Both countries are running out of carpet to sweep their dirt under.

Average new-home prices in the 70 cities tracked surged by 1.8% in September from the month prior. On an annual basis, housing prices soared 11.2% year over year, after a 9.2% jump in August. This was the biggest annual jump on record, and the 12th consecutive month in year-over-year gains.

The Great Recession was a result of a massive monetary policy error. The Fed kept rates too low for too long, which - when coupled with lax or no regulation in the mortgage markets - resulted in a housing bubble and a crash. This then bled over to global markets. We are again suffering the effects of a massive monetary policy error. The error has already been committed, but we have just begun to endure the consequences.

A couple of trillion dollars of freshly created debt and a collapsing currency (which did nothing for the trade balance which was described as "not very solid" by authorities) along with a dead stock market, a bond market at record low yields (unconvinced at any recovery) and a housing bubble and China's National Statistics Bureau 'nails it' with 'meets' across the board (albeit Industrial production disappointed).

".. that was one of the biggest mistakes the central banks made during the financial crisis: They stopped the debt from blowing up. So we never had a cleansing... we are still solving the too-much-debt-problem with too much debt... the Fed is still saying We will make money for free and you just need to borrow more money, and that's its solution to having too much debt. It's insane when you look at it. "

While many were wondering if China would unleash QE (which it has been effectively doing for years, using various liquidity conduits), Beijing has quietly launched the biggest fiscal stimulus in history, one that is even bigger than 2009-10, following the global meltdown.

The economy has gone suicidal. It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.